Koss Corporation reports first quarter sales decline and increased net loss

Koss Corporation reported a decline in net sales for the first quarter of fiscal 2025, totaling $3.2 million, down 5.1% from $3.4 million a year earlier. The company also experienced a larger net loss of $419,535 compared to $257,609 in the same period last year. Sales to domestic distributors fell, but Koss saw a 30% increase in sales to its largest European distributors, aided by the launch of the Porta Pro Wireless 2.0. Direct-to-Consumer sales also rose, driven by strong performance on Amazon. Gross margins improved to 36.6% from 31.6% due to higher margins on new products and increased DTC sales. The company noted challenges with inventory write-offs and rising freight costs, which it is monitoring ahead of the holiday season.